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in Home Services in Lead Generation

Is Angi Leads Worth It for Contractors?

October 25, 2024
Claudia Watson
Posted by Written By Claudia Watson

Angi Leads, formerly known as HomeAdvisor, is a widely recognized platform designed to connect contractors and service providers with homeowners seeking home improvement services. While it can seem like a promising way to generate leads, many contractors have reported drawbacks and challenges with the service. In short, Angi Leads is generally not worth it for most contractors due to high costs, low-quality leads, and various legal concerns that make it a risky investment.

Costs and Contract Issues

One of the biggest concerns about Angi Leads is its cost structure. The price per lead can range anywhere from $15 to $85 or more, depending on the type of service and the location​. For contractors in highly competitive areas, these costs can quickly add up. In some cases, contractors have reported paying as much as $550 per month for just 7-9 leads​. This high cost is compounded by the fact that the leads may not always convert into jobs, making it difficult to recoup the investment.

Additionally, Angi often requires contractors to sign a one-year contract, which includes hefty early termination fees​. This means that even if a contractor is dissatisfied with the service, canceling the contract can be expensive and complicated. For businesses that are just starting out or have tight budgets, these contract terms may be a significant deterrent.

Lead Quality Concerns

Another issue frequently raised by contractors using Angi Leads is the quality of the leads they receive. Many contractors report receiving leads that are not relevant to their service area or their specific services. For example, a contractor based in one city may receive leads from homeowners in another city, far outside their typical service area​. Additionally, potential clients are often looking for unrealistically low prices, which can lead to wasted time and effort.

In some cases, contractors have reported receiving leads that seem to be fake or unresponsive​. These leads can be frustrating because they still count toward the contractor’s monthly lead quota, meaning they are paying for leads that offer no real opportunity for business. Another major concern is that Angi often sells the same lead to multiple contractors. This means that several businesses may be competing for the same job, further reducing the chances of winning the contract.

Reputation and Legal Issues

Angi has faced multiple legal challenges over the years. These include class-action lawsuits accusing the company of manipulating reviews and engaging in false advertising​. The Federal Trade Commission (FTC) has also charged HomeAdvisor, the parent company of Angi, with deceptive marketing practices​.

Beyond legal issues, many contractors have reported difficulties with billing and unauthorized charges. Some have found it challenging to receive refunds or resolve disputes, further damaging Angi’s reputation among service providers. These legal and reputation concerns can be a red flag for contractors looking to partner with a trustworthy lead generation platform.

Potential Benefits

Despite the numerous concerns surrounding Angi Leads, there are still some contractors who find value in the service. For businesses just starting out, Angi can be a way to gain exposure and receive targeted leads​. While the cost may be high, some contractors have been able to land significant jobs through the platform, particularly in less competitive markets where lead volume is lower.

Additionally, Angi’s review system allows contractors to build an online reputation. Positive reviews on the platform can help boost a business’s credibility and attract new clients. For contractors who take the time to engage with clients and solicit reviews, this can be a valuable tool for establishing trust and growing their business​.

Alternatives and Recommendations

For most contractors, the drawbacks of Angi Leads may outweigh the potential benefits. High costs, low-quality leads, and legal concerns can make the platform a risky investment. As a result, many contractors recommend exploring alternative marketing strategies to generate leads.

One of the most effective alternatives is to focus on organic growth. Building a loyal customer base through referrals and repeat business can provide a steady stream of high-quality leads without the need to pay for expensive lead generation services. This approach may take more time but can lead to more sustainable and profitable business growth in the long term.

Another recommendation is to diversify lead sources. Relying on a single platform like Angi can be risky, especially if the lead quality fluctuates or the pricing structure changes. By spreading lead generation efforts across multiple channels—such as social media, Google Ads, and other online directories—contractors can reduce their reliance on any one source and ensure a more stable flow of leads​.

Investing in local SEO and building a strong online presence are also key strategies. A well-optimized website and a strong presence on platforms like Google My Business can help contractors attract local clients who are actively searching for services in their area. Responding to online reviews, maintaining updated business listings, and engaging with customers on social media are additional ways to enhance online visibility and reputation​.

FAQ

What Is The Difference Between Angi Ads and Angi Leads?

Angi Ads is an advertising platform where businesses can create and manage their own promotional campaigns on Angi’s website and app. This gives businesses direct control over their advertising strategy, allowing them to target specific customer segments and tailor their campaigns to meet precise objectives. In contrast, Angi Leads is a more passive lead generation service. With this option, Angi collects and delivers potential customer leads directly to businesses based on matching their services and location. Businesses pay for each lead, with pricing based on the volume and relevance of the leads received.

What Are Websites Like Angi’s?

Websites like Angi have set a high standard, but HomeAdvisor, Thumbtack, Houzz, Porch, Pro Referral, Service Direct, and Yelp—offer unique features that cater to diverse needs and preferences.

How Does Angi Leads Work?

Angi Leads is a lead generation platform designed to help service professionals, such as contractors, landscapers, plumbers, and electricians, connect with potential customers. Angi Leads helps businesses find job opportunities by sending them leads—individuals who are actively looking for the services they provide. The platform relies on a pay-per-lead model, which means contractors pay a fee for each lead they receive.

Final Thoughts

Looking to elevate your brand’s online presence? At 7ten Digital Marketing, we specialize in results-driven strategies to increase visibility, engagement, and conversions. Our team of experts are here to drive more targeted traffic to your site. Whether you’re a small business or a large corporation, we have the tools and expertise to help you outperform your competitors and reach your digital marketing goals. Take the next step toward success—partner with 7ten Digital Marketing today and see the difference professional digital marketing can make for your brand!

Claudia Watson 7ten Digital Marketing Specialist

Claudia is a Digital Marketing Specialist at 7ten, where she started as an intern in February 2023 and went full-time in August after graduating from Towson University. There she studied business with a concentration in marketing. She’s passionate about crafting engaging content and optimizing SEO to help businesses grow.

Read More About Claudia

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